Members of the Russellville City Council and Regional Airport Commission met Friday at the Chamber of Commerce to discuss airport-funding issues during lunch.

Commissioners said Tuesday night rising aviation fuel costs since the Sept. 11, 2001 terrorist attacks, the loss of three industries in the area, and potential grant funds that are not available until airport projects are completed have led to the airport using up its reserve fund and experiencing a cash-flow problem of $80,000 in operational costs during the past three years.

Although there were concerns about the airport's operational costs, four aldermen and Mayor Raye Turner said Friday they were impressed with the commission's presentation and plan to discuss the matter during Thursday's regular city council meeting.

"It was an excellent presentation," Turner said. "They showed the economic benefit of the airport. The funds they are asking for are matching-type funds, where it's either 50 percent return on your money or 90-10 percent (matching grant) return on your money."

Alderman Tyrone Williamson noted the commission worked hard to present the airport's total package that benefits the Arkansas River Valley.

"It was a very informative meeting," Williamson said. "It was a nice presentation. The business people really built this town. Going along with getting new industry into this town, we've got to take care of our airport. We've got to make something happen. By doing this, we are showing we are there for them."

Alderman Ronnie Tripp said he thought the city should support the airport, it's now a matter of deciding how to do it.

"I don't know about which way we will approach it, but I assume we will try to do something," Tripp said. "I hope between now and Thursday we have something worked out. The airport has $1.6 million in grants, which means our part is $400,000 in matching funds. It generates quite a bit of money from the community and businesses. There's several ways there, and we've just got to step up to the plate."

Calling the airport the "front door" for many executives and businesses in and around the Arkansas River Valley -- including serving as home base for 60 local businesses and private aircraft -- commissioners told council members Friday decreases in air travel following 9/11 meant fuel losses topped more than 260,000 gallons per year, to a little more than 160,000 gallons, with expenses remaining essentially consistent.

Another revenue problem has been the holdup on state matching funds for airport improvement projects that have already been paid out. Contractors are paid when they complete their portion of the job, but the state pays matching funds to the airport only when the entire project is complete.

Late in the airport's runway project, the Federal Aviation Administration (FAA), with the commission's concurrence, committed extra funds to expand the project's scope to include acquistion of air rights over properties off of both ends of the airport. The project must be completed before the state's reimbursement of $54,580 will be received by the airport.

The airport has made thousands of dollars in payments to contractors and will eventually be repaid by the state. However, the airport has consumed its reserve funds to the point there are no more left, commissioners said. The runway upgrade project is expected to be completed by the end of this year.

Commissioners will also request an immediate loan equal to outstanding state matching funds on the security gate project ($22,000), expected to be completed within three months.

"They presented a very good package as to what the airport has done," Alderman Randal Crouch said. "It was a good meeting. They showed us how the airport is very beneficial to the city. We really need to get behind them until all these grant funds are coming along. Expenses have increased and income has decreased because not as many people are buying fuel.

"In reality, the airport is just another department of the city, just something the city has to take care of. The airport is such a vital role in the improvement of Russellville."

City council member Faye Abernathy agreed.

"I thought the presentation was very good, and I thought their information was helpful," Abernathy said. The services the airport provides are very helpful to the businesses and citizens of not just the city of Russellville, but the area as a whole."

The commission will also ask the council to provide annual ongoing operational funding of airport operations roughly equal to the sales tax income realized by the city from airport operations, or $60,000. The city's budget provided the airport $10,000 this year.

If some sort of agreement was reached, commissioners said the funding assistance would allow the airport to continue operations and fund facility improvements benefiting all city and area citizens at no extra expense to Russellville, other than the turnback of tax funds generated by operation of the city's airport.